With the end of the support of the Swiss Franc by the SNB (15/01/15), which was fixed at 1.2CHF for 1EUR, the SNB reduced one more time the 3 months Libor rate at -0.75%.
This decision is droping all the rates up to 16 year in negative territory.
This situation, create an issue for big investor that need to pay the SNB if they want to leave their money in Switzerland.
Even the Swiss government bond don’t generate interest, it’s a crazy world in my opinion.
The consequences are multiples, new limitation for the real economy, important risk of rate variation, probable new consolidation of bank sectors and major repercussion Swiss saving system.
And now, what 2015 will give us, a lot of volatility, a major correction, a bear market?
What are your thoughts?